Hospitals 'struggling with NHS mortgage repayments' (PFI)

[T_i_B]

http://www.bbc.co.uk/news/health-15010279

Paying off the "NHS mortgage" is putting so much pressure on the system in England that the future of some hospitals is at risk, ministers say.

The government said 22 trusts - running 60 units - are facing difficulties because of the cost of paying for privately-funded building projects. The group represents nearly a fifth of the 100-plus PFI schemes in the NHS.

Problems are being encountered because, for some trusts, repayments account for up to a fifth of their budget.

PFI is a way of funding building projects using private money. It was originally introduced by the Tories under John Major, but the use of the scheme was largely expanded into the NHS by Labour.

[dipsydoodle]

1. Noticed that earlier on the Beeb.

and was mulling it over while I was out in context of your other post which alluded "to telling the wood from the trees" when it comes to Labour and the Tories.

Yes - New Labour inherited the concept from the Tories , who I think got the idea from Australia ,and then went for it big time. Its figure fudging to keep stuff "off balance sheet" - sort of anyway. Basically the only way out would be for a government to take out a truly vast loan and have the leases unwound or settled. Loan interest would likely be less than onerous lease payment interest.

Use of contractors is another issue which I believe to be generally associated with deflating exposure on public service pensions.